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Investing.com -- Applied Optoelectronics, Inc. (NASDAQ:AAOI) stock jumped 13.2% following the company’s announcement of its first volume shipment of high-speed data center transceivers to a recently re-engaged major hyperscale data center customer.
The milestone represents the first significant quantity shipped to this customer in several years, according to the fiber-optic access network products provider. This development aligns with the company’s previously communicated expectations for growth in data center transceiver sales, particularly in the second half of the year.
Dr. Thompson Lin, AOI’s Founder, Chairman, and CEO, stated that this shipment "represents a significant milestone on a journey to what we continue to expect to be significant business opportunities with this newly re-engaged customer." He added that as the company executes on its previously announced US-based capacity expansion plan, it expects shipments to this customer and others to increase in line with previous commentary of a second-half ramp.
Applied Optoelectronics serves various markets including internet datacenters, cable broadband, telecom, and fiber-to-the-home (FTTH). The company’s products are designed to transmit data at high speeds within these environments.
The renewed business relationship with a major hyperscale customer appears to be driving investor optimism about the company’s growth trajectory for the remainder of the year, particularly as AOI continues to expand its US-based manufacturing capacity.
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